A system and method for capturing and separating carbon dioxide from mixed gas streams. The gas stream is processed in a structure including a compression module comprising a plurality of compressors, intercoolers and inter-stage condensate separators. The flow path from the compression module includes a plurality of flow separators, gas stream splitters, heat exchangers and at least a first mixer and a first expander. The gas stream is sequentially compressed and cooled to form process condensate and separate it from the compressed gas stream. The gas stream is further dried and cooled to liquefy carbon dioxide and separate it from the non-condensable portion. Selective expansion of liquid carbon dioxide streams provides cooling for the system, and further energy efficiency is achieved by selective recycling of portions of gas streams, allowing for compact equipment and economical operation, while providing for high purity product streams of carbon dioxide.